Gold and Silver Fall Sharply

Gold and silver prices came under strong pressure after Tuesday’s close as rising U.S. Treasury yields, a stronger U.S. dollar and inflation concerns linked to oil prices outweighed safe-haven demand.

At the time of writing, spot gold traded near $4,481.20/oz, down 1.84%, while spot silver fell to around $73.58/oz, down 5.13%. The decline pushed gold below the important $4,500 level, while silver broke below the $74 support area.

Bond Yields Remain the Main Pressure Point

Although U.S. pending home sales rose 1.4% in April to 74.8, beating expectations of a 1.0% gain, this data was not the main driver for precious metals.

The bigger pressure came from the bond market. The 10-year Treasury yield moved near the 4.6% area, while the 30-year yield approached its highest level since 2007. Higher yields make non-yielding assets like gold and silver less attractive, increasing selling pressure across the precious metals market.

Geopolitical Risk Still Supports Uncertainty

The Strait of Hormuz remains a key geopolitical risk channel for metals, energy and global rates. Oil prices moved lower as traders monitored U.S.-Iran deal developments, especially after President Donald Trump delayed a planned attack on Iran.

However, the market has not yet priced in a clear reopening of the waterway. This means geopolitical uncertainty remains present, but for now, it has not been strong enough to offset the pressure from rising yields and a firmer dollar.

Broader Markets Also Weaken

U.S. equities also closed lower, with the Dow Jones Industrial Average falling more than 300 points, while the S&P 500 and Nasdaq declined for a third straight session.

The rise in Treasury yields tightened financial conditions and weighed on technology shares. Energy stocks showed relative strength, while basic materials weakened alongside the selloff in precious metals.

Meanwhile, WTI crude oil settled around $107.77/barrel, while Brent crude settled near $111.28/barrel. The U.S. dollar index remained firmer, adding another layer of pressure on gold and silver.

Key Technical Levels to Watch

For gold, the next important resistance zone is around $4,530–$4,550. A sustained move above this area could open the way toward $4,600, then $4,715.

On the downside, the first key support is seen at $4,464.50. If this level breaks, gold could face deeper pressure toward $4,370 and $4,350.

For silver, the key resistance area is $75.00–$76.63. A move back above this zone could support a recovery toward $78.00 and $79.00.

On the downside, silver’s first support is around $73.03. If sellers push below this level, the next targets could be $72.00 and $71.00.

Conclusion

Gold and silver remain under pressure as rising Treasury yields and a stronger U.S. dollar reduce the appeal of non-yielding assets. While geopolitical risk around the Strait of Hormuz continues to create uncertainty, the market is currently reacting more strongly to bond yields, inflation concerns and tighter financial conditions.

In the short term, traders should closely watch whether gold can recover above $4,530–$4,550, and whether silver can reclaim the $75–$76.63 zone. Until then, precious metals may remain vulnerable to further downside pressure.

Source: Kitco